Final answer:
Ruth Hu is using her inherited $200,000 as a store of value by investing in real estate and government securities. This method of investment is aimed at preserving the capital and maintaining its worth over time.
Step-by-step explanation:
Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. In this scenario, Hu is using her money as a store of value. Money serves various functions in an economy, including being a medium of exchange—a way of buying things, a unit of account—giving a specific value to goods, and a store of value—keeping money to retain its worth over time. Investing in stable and tangible assets like real estate and government securities is primarily about preserving the capital and maintaining its value against inflation and other economic fluctuations, rather than using it immediately as a medium of exchange or for day-to-day transactions.